https://www.taxtmi.com/caselaws?id=59654 A sales-tax incentive under the Maharashtra incentive scheme was treated as a capital receipt because the scheme's purpose was to promote fixed capital investment and industrial development in backward areas. The Tribunal held that the decisive test was the object of the scheme, not the fact that the subsidy was disbursed after production began. It also viewed retention of sales tax as only the method of disbursal, not the character of the incentive. The incentive was therefore linked to setting up and expanding industrial units, rather than to assisting trading operations, and was not chargeable as revenue income. en-us Thu, 23 Oct 2003 00:00:00 +0530 Thu, 04 Jul 2024 18:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59654 A sales-tax incentive under the Maharashtra incentive scheme was treated as a capital receipt because the scheme's purpose was to promote fixed capital investment and industrial development in backward areas. The Tribunal held that the decisive test was the object of the scheme, not the fact that the subsidy was disbursed after production began. It also viewed retention of sales tax as only the method of disbursal, not the character of the incentive. The incentive was therefore linked to setting up and expanding industrial units, rather than to assisting trading operations, and was not chargeable as revenue income. Case-Laws Income Tax Thu, 23 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59654